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MSCI launches frontier markets 100 index
12 April 2012
Forthcoming iShares ETF to be based on new index
MSCI, a provider of investment decision support tools worldwide, has announced the launch of a new index, the MSCI Frontier Markets 100 Index.
The index is highly correlated to the broader MSCI Frontier Markets Index, but is composed of just 100 of its largest and most liquid constituents. The index will be used by BlackRock for a forthcoming iShares ETF.
“We have seen significant demand from clients around the world for a more tradable version of our MSCI Frontier Markets Index—especially from those who face various obstacles in replicating broader frontier markets indices,” said Baer Pettit, managing director and head of the MSCI Index Business. “We expect that the MSCI Frontier Markets 100 Index will serve as the basis for numerous index-linked investment vehicles, ultimately providing investors with new ways to gain exposure to the frontier markets.”
Based on the broader MSCI Frontier Markets Index, the MSCI Frontier Markets 100 Index is a representative and more easily replicable alternative. The new index provides broad coverage of the frontier markets while putting a stronger emphasis on tradability compared to the parent MSCI Frontier Markets Index, through the application of a number of inclusion criteria.